Amun, a leader in DeFi index products, announced this week the launch of the Polygon Ecosystem Index (PECO) token, as per a release shared with CryptoSlate.
Available through the Amun Platform, the PECO token is an index of the top projects being built on Polygon, an Ethereum scaling platform onboarding millions to Web3 – giving users targeted exposure to the entire Polygon ecosystem, rather than just projects that live on both chains.
The product was created collaboratively by Amun, Polygon Foundation, and leading Polygon projects, PECO is Polygons first ecosystem index token.
Inside the bet on the Polygon ecosystemPECOs initial composition is made up of 50% MATIC, with the remaining 50% comprising Quickswap, DFYN, Adamant Finance, Aavegotchi, and Qi Dao. This composition provides an alternative to only holding MATIC, instead of providing a token that grows with the entire Polygon ecosystem.
PECO is rebalanced on a monthly basis to lock in gains and ensure constituent tokens are allocated accordingly by the rank of market capitalization and liquidity. The portion of MATIC in PECO is expected to be lowered over time to make room for other promising projects. PECO is free of management fees until 2023.
The token can be minted and burned at any time with one click on the Amun Platform, and is also available through other major exchanges such as SushiSwap. And to broaden investor access to the Polygon ecosystem, PECO is available on both Polygon and Ethereum. Ethereum users can buy, mint, or burn PECO tokens with a single click. Amuns integration with the Polygon Bridge makes the process seamless to the user.
“Given the growth of blockchain ecosystems beyond Ethereum, we believe index tokens that give users exposure to the top projects in an individual ecosystem are vital to onboarding users to these new platforms,” explained James Wang, Head of Tokens at Amun.
Several developmentsSandeep Nailwal, the co-founder of Polygon, added, Recently surpassing Ethereum in daily active addresses, Polygons DeFi ecosystem has over $4 billion in total value locked. Launching PECO takes Polygon to the next stage of growth.
“While Polygon was initially developed as a side-chain to enable computation of the Ethereum mainnet, it has evolved to become the most popular interoperability and scaling platform for building Ethereum-compatible blockchains.”
With developers and NFT projects around the world flocking to Polygon, were seeing constant growth in the number of innovative projects that are achieving incredible success. With PECO, investors can get in early as developers work to shape the next phase of DeFi and Web3.
Polygon is currently home to the highest number of Dapps, more than 500, outside of Ethereum – including Sushiswap, Curve, Aave, Balancer, and Kyber.